NASDAQ$DGII

Digi Intl Inc · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Digi reported record quarterly revenues and ARR.

Digi International reported a strong second quarter with record revenues of $95 million, a 23% increase year-over-year, and record ARR of $90 million, a 165% increase year-over-year. The company's Adjusted EPS increased to $0.41, a 52% increase, and Adjusted EBITDA increased to $19.5 million, a 67% increase.

  • Revenue was $95 million, an increase of 23%.
  • Adjusted EPS increased to $0.41 per diluted share, an increase of 52%.
  • Adjusted EBITDA increased to $19.5 million, an increase of 67%.
  • Annualized Recurring Revenue (ARR) was $90 million, an increase of 165%.

Headline financials

Total Revenue

$94.7M

Previous: $77.3M+22.5%
EPS (adj)

$0.41

Previous: $0.27+51.9%
Free Cash Flow

$2.85M

Previous: $2.93M-2.8%
Net Income

$2.85M

Previous: $2.93M-2.8%
Operating Income

$7.56M

Previous: $3.37M+124.5%
Gross Profit

$52M

Previous: $40.5M+28.5%
Cash & Equivalents

$41.4M

Previous: $127M-67.5%
Total Assets

$870M

Previous: $608M+43.1%
Stock-Based Comp

$2.24M

Previous: $2.48M-9.5%

Revenue & EPS history

Digi · Revenue · Quarterly

$94.7M

Q2 2022+22.5%vs Q2 2021
Beat estimate in 15 of 16 quarters(94%)
ActualEstimate

Revenue by segment

Digi · $23.3M total across 1 segment · Q2 2022

  • IoT Solutions
    $23.3M+99.1%

Forward guidance

Digi International anticipates revenues between $94 million and $98 million for the third fiscal quarter of 2022, representing 19% to 24% growth year-over-year. Adjusted EBITDA is estimated to be $18.0 million to $19.5 million, and Adjusted EPS is expected to be $0.37 to $0.40 per diluted share, using a fully diluted share count of 36.2 million shares.

Tailwinds

  • Revenues are estimated to be $94 million to $98 million, or 19% to 24% growth year over year.
  • Adjusted EBITDA is estimated to be $18.0 million to $19.5 million.
  • Adjusted EPS to be $0.37 to $0.40 per diluted share.
  • Expect revenues will grow between 16.5% and 23% for the fiscal year.
  • Expect Adjusted EBITDA to grow at a faster rate of between 35% to 55% for the fiscal year.

Headwinds

  • Supply chain challenges.
  • Challenging macro conditions.
  • Difficult to predict various items including but not limited to the impact of foreign exchange translation, restructuring, interest and certain tax related events.
  • Uncertainty in global economic conditions.
  • Economic conditions within particular regions of the world which could negatively affect product demand and the financial solvency of customers and suppliers.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2022

Historical avgQ2 2022

+1.6%

Avg return

Earnings day

+3.1%

Avg return

5 days after

+4.0%

Avg return

30 days after

55%

36 / 65 earnings

Positive

+18.2%

Q1 2019

Best reaction

-23.3%

Q3 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2026+5.4%+4.5%+12.0%
Q1 2026-3.9%-1.1%+4.9%
Q4 2025+6.8%+7.1%+26.5%
Q2 2025+14.0%+21.4%+21.8%
Q1 2025+17.3%+15.5%-4.9%
Q4 2024-2.9%-5.0%+1.7%
Q3 2024+17.9%+16.9%+16.0%
Q2 2024-16.8%-11.9%-20.5%
Q1 2024+10.0%+13.3%+18.6%
Q4 2023-7.1%-1.0%+1.2%
Q3 2023-23.3%-22.4%-20.6%
Q2 2023+8.8%+9.0%+26.3%
Q1 2023+0.8%+2.7%-2.5%
Q4 2022+9.5%+13.6%+8.2%
Q3 2022+13.4%+9.1%+7.8%
Q2 2022+4.2%+3.1%+34.1%
Q1 2022-6.7%-9.5%-9.8%
Q4 2021+10.2%+6.6%+7.7%
Q3 2021-2.3%-0.1%+5.7%
Q2 2021-2.0%-2.0%+5.5%
Q1 2021+17.3%+28.3%-9.3%
Q4 2020-5.4%-0.7%+6.4%
Q3 2020+12.3%+8.6%+6.7%
Q2 2020+14.5%+5.9%+10.7%
Q1 2020-3.7%-15.2%-19.3%
Q4 2019+17.5%+23.2%+15.1%
Q3 2019+4.8%+10.2%+4.4%
Q2 2019-1.3%-3.4%-15.7%
Q1 2019+18.2%+17.7%+14.0%
Q4 2018+13.5%+6.1%+0.4%
Q3 2018+0.7%+0.4%-1.9%
Q2 2018-1.3%+1.3%+4.8%
Q1 2018+1.0%+0.5%+2.4%
Q4 2017+1.4%+0.5%+0.5%
Q3 2017-1.0%+2.5%-7.2%
Q2 2017-13.0%-18.9%-19.5%
Q1 2017-1.1%-4.0%-5.1%
Q4 2016-10.6%-10.1%+24.9%
Q3 2016-1.7%-3.0%+3.7%
Q2 2016+13.5%
Q1 2016-15.6%
Q4 2015+8.7%
Q3 2015+3.0%
Q2 2015+6.4%
Q1 2015+8.3%
Q4 2014+4.2%
Q3 2014-6.2%
Q2 2014-11.3%
Q1 2014-16.7%
Q4 2013+1.6%
Q3 2013+4.3%
Q2 2013-0.2%
Q1 2013-0.9%
Q4 2012-1.7%
Q3 2012+1.8%
Q2 2012-16.0%
Q1 2011+3.6%
Q1 2012-3.8%
Q2 2011+4.4%
Q4 2009+4.4%
Q4 2011+4.4%
Q4 2010-2.2%
Q3 2011-2.2%
Q3 2010-2.2%
Q2 2010+1.3%

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